Posted by bill on February 05, 2007 at 12:45:03:
is loan officer liable…?
A CA licensed DRE loan officer who is not licensed in MN originated a transaction in MN as a W2 employee under the CA mtg broker’s corporation name.
the borrower then missed their 1st payment on purpose. they got a refinance with cash out.
Now, the wholesale lender is going after CA based mtg broker owner since they originated the MN deal and it went into default in the 1st 120 days. by the way, the CA mtg broker is licensed to do business in MN.
Now the CA mtg broker says if they incur attorney fees and expenses that could amount to $100,000+ (from the lender’s foreclosure process)they will turn around and sue the loan officer on account of a indemnification clause t hold harmless from all expenses, attorney’s etc. in the ind. contractor agreement.
The loan officer has this signed 1099 Ind. Contractor agreement, not a W2 agreement.
loan officer does not have a W2 agreement but does receive origination commissions on W2 states minus taxes as if it were a 1099 deal.
In addition, the broker is holding loan officer’s California commissions earned as 1099 Ind. contractor which is in violation of business contract law.
thoughts…?
So, is this CA mtg broker bluffing ?
aren’t W2 laws different from ind. contractor and the mtg broker owner’s claim should not hold up right because of basic contract law… ?